Hindustan Unilever Limited Marketing Strategies
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Hindustan Unilever Limited (HUL) is a leading Indian consumer goods company, founded in 1933 and headquartered in Mumbai, with a diverse product portfolio across various categories. The company emphasizes strong marketing strategies tailored for both urban and rural markets, aiming to meet consumer demands while focusing on corporate social responsibility initiatives. Challenges include competition, high advertising costs, and the need to adapt to changing consumer lifestyles, with ongoing efforts to innovate and expand its reach.
![Brands - hul
The company has a distribution channel of 6.3 million outlets and owns 35 major Indian brands.[8] Its
brands include:](https://image.slidesharecdn.com/koushikduttahul265113021-141019020710-conversion-gate02/85/Hindustan-Unilever-Limited-Marketing-Strategies-6-320.jpg)
![Brands - hul
The company has a distribution channel of 6.3 million outlets and owns 35 major Indian brands.[8] Its
brands include:](https://image.slidesharecdn.com/koushikduttahul265113021-141019020710-conversion-gate02/85/Hindustan-Unilever-Limited-Marketing-Strategies-11-320.jpg)
Hindustan Unilever Limited Marketing Strategies
- 1. Hindusthan Unilever Limited Case Study Koushik Dutta MBA Marketing Sem-3, ID-265113021 School of Management Sciences, IIEST Shibpur
- 5. Company overview Hindustan Unilever Limited (HUL) is an Indian consumer goods company based in Mumbai, Maharashtra. It is owned by Anglo-Dutch company Unilever which owns a 67% controlling share in HUL. HUL's products include foods, beverages, cleaning agents and personal care products. HUL was established in 1933 as Lever Brothers India Limited and, in 1956, became known as Hindustan Lever Limited, as a result of a merger between Lever Brothers, Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd. It is headquartered in Mumbai, India and employs over 16,500 workers, whilst also indirectly helping to facilitate the employment of over 65,000 people. The company was renamed in June 2007 as “Hindustan Unilever Limited”.
- 6. Brands - hul The company has a distribution channel of 6.3 million outlets and owns 35 major Indian brands.[8] Its brands include:
- 9. Brands - hul HUL is the market leader in Indian consumer products with presence in over 20 consumer categories such as soaps, tea, detergents and shampoos amongst others with over 700 million Indian consumers using its products. Eighteen of HUL's brands featured in the ACNielsen Brand Equity list of 100 Most Trusted Brands Annual Survey (2012), carried out by Brand Equity, a supplement of The Economic Times. The "most trusted brands" from HUL in the top 100 list (their rankings in brackets) are: Clinic Plus (4), Lifebuoy (10), Fair & Lovely (11), Rin (12), Surf Excel (13), Lux (14), Pepsodent (17), Closeup (19), Pond’s (20), Sunsilk (26), Dove (37), Vim (43), Pears (79), Lakme (81), Vaseline (86), Wheel (87), Hamam (95) and Rexona (96). The latest launches for Hindustan Unilever include: Surf Excel Easywash; Lakmé eyeconic range; Vim Anti Germ bar;Pureit Marvella UV with Advance Alert System; TRESemmé: For Salon style hair at home everyday; Clinic Plus: Milk Protein Formula A++; Comfort 1 Rinse; Bru Exotica Guatemala; Closeup: Deep Action; Dove Hair Fall Rescue Treatment; Taaza: Taazgi bhari chaai, dimaag khul jaaye.
- 10. © HUL
- 11. Brands - hul The company has a distribution channel of 6.3 million outlets and owns 35 major Indian brands.[8] Its brands include:
- 12. SWOT Analysis Strengths: •Strong brand portfolio, price quantity & variety. •Innovative Aspects. •Presence of Established distribution networks in both urban and rural areas. •Solid Base of the company. •Corporate Social Responsibility(CSR) Weaknesses: •"Me-too" products which illegally mimic the labels and brands of the established brands. •Strong Competitors & availability of substitute products. •Low exports levels. •High price of some products. •High Advertising Costs.
- 13. SWOT Analysis Opportunities: •Large domestic market – over a billion populations . •Untapped rural market. •Changing Lifestyles & Rising income levels, i.e. increasing per capita income of consumers. •Export potential and tax & duty benefits for setting exports units. Threats: •Tax and regulatory structure. •Mimic of brands •Removal of import restrictions resulting in replacing of domestic brands. •Temporary Slowdown in Economy can have an impact on FMCG Industry.
- 15. Our first priority is to our consumers, then customers, employees and communities. When we fulfill our responsibilities to them our shareholders will be rewarded.
- 16. Question no 1 strategies HUL
- 21. MARKETING STRATEGIES OF HUL FOR URBAN INDIA Adopted Total Productive Maintenance(TPM) to meet zero error, zero loss. Focuses on short supply chain for distribution. To meet the every needs of people everywhere. Also uses Direct selling channel(HUN), franchisee to reach everyone e.g. Aviance, Ayush. Build segments & market for the future where Unilever has strong expertise. MARKETING STRATEGIES OF HUL FOR RURAL INDIA • For long term benefits, HUL started Project Streamline in 1997. • Appointed 6000 Sub-stockists that directly covers about 50,000 villages & 250 million customers. • Integrate Economic, Environment & Social objectives with Business agenda. • Project Shakti, partnership with Self help groups of Rural women & covers 5000 villages in 52 districts in different states. • Market leader Hindustan Unilever (HUL) is setting up 14 new consumer clusters as part of an aggressive initiative to drive growth across smaller but fast-growing markets cross India. Rural markets contribute to 55% of the total FMCG consumption in India.
- 22. Corporate social responsibility Providing education on health and hygiene Women empowerment Water management Rehabilitation of special or underprivileged children Care for the destitute and HIV-positive Rural development. Plays active role in natural calamities
- 23. 1 Started in 2001, Shakti is HUL's rural initiative, which targets small villages with population of less than 2000 people or less. Micro-enterprise opportunities for rural women Providing health n hygiene education through shaktivani program ishakti portal Shakti has already been extended to about 15 states ,80,000 villages in with 45,000 women entrepreneurs and generating Rs.700-1000 per month to each women.
- 24. Question no 2 strategies for Pepsodent to compete with Colgate in urban market
- 25. SEGMENTATION • Rural Areas • Urban Areas Geographic • Normal Use • Whitening • Complete Care Behavioural • Pepsodent G • Pepsodent Kids • Pepsodent Milk Teeth Strawberry Demographic Most of Pepsodents products are sold in the urban areas. The sales from the Urban areas constitutes approximately 80% of their income. Pepsodent spread awareness of the benefits of oral hygiene. This awareness would therefore help increase its sales, in the rural areas
- 26. Geographical Segmentation The urban market for toothpaste is almost stagnant. Hence for deeper penetration in the rural markets they have taken the following measures Smaller 100gms packs priced at 10 rupees Tooth campaigns at various schools in villages. Behavioural Segmentation Variants to suit different consumer preferences G for Gum Care Germicheck for Cavities Whitening for White teeth Age Pepsodent Kids 1. Barbie (pink color) 2. Superman (Blue color) 3. Tom & Jerry (Orange color)
- 27. TARGET MARKET SELECTION Pepsodent is currently into Selective Specialization Pepsodent Kids for kids Smaller and cheaper variants for rural markets Pepsodent complete for the educated urban consumer This type of Targeting means targeting different markets with different prducts. Pepsodent positioning: Pepsodent was launched in 1993 by HUL to capture the market from Colgate. It was launched in the platform of Germ fighting property. Pepsodent have experimented with its positioning althrough its life. Ad Campaigns to supplement this positioning: Lasting Protection for hours Germ Fighting Campaign Dental Insurance Dishum Dishum Bhoot Campaign
- 28. Five Product Levels Pepsodent has its products which cover a large area Their products are Pepsodent Germicheck + Pepsodent Whitening Pepsodent 2 in 1 Pepsodent G Pepsodent Kids
- 29. Colgate vs Pepsodent Colgate also has 4 other variants – Salt, Herbal, Total and Cibaca Family Protection. Pepsodent has no equivalents (Pepsodent Complete has been discontinued). Pepsodent has the ‘2 in 1’ variant for which Colgate doesn’t have an equivalent. Some of the variants mentioned above have sub-variants which have a price variation of 1-2 Rs. Overall, Pepsodent is priced at the same level as Colgate, however, they have different selling points. Pepsodent has the ‘Offers protection against germs’ angle while Colgate has the ‘Makes teeth stronger’ angle. Toothbrushes from Pepsodent as well as Colgate are priced Rs.30-40. Oral-B, the main competitor in this field, has toothbrushes ranging from Rs.25 to over Rs.50 due to greater product variety.
- 31. Strategies for Pepsodent Along with an offer of free dental check-ups, HUL is also planning to organise health camps involving villagers to fortify its campaign. “To promote Pepsodent, we will also offer free samples to the villagers to try out the product and offer discount coupons on wrapper redemption schemes,” Discounts During their promotional offers, Pepsodent sells its products at a discounted price. Else they offer products with offers. E.g Buy 1 get 1 free or 150g + 150g = Rs 40 and not Rs 50
- 32. Future Prospects to Increase Its Sales 1. A kit can be introduced along with a “Kids Stand” to hold only the Pepsodent Kids toothpaste and toothbrush in sockets. The sockets must be made to hold only the Pepsodent products. 2. The Kids Stand can be introduced in variety of themes matching different characters. The kit can also contain a booklet/ sheet depicting a small story or characters description. The children view these as their toy and also feel proud of owning it. 3. Children generally use the toothbrush for 3 months but the toothpaste gets over in a month considering 40 gm pack. Hence once the tooth paste gets over, children refill the socket with Pepsodent Kids toothpaste in that place
- 33. Question no 3 strategies for detergent power for rural mass
- 34. Indian Laundry Market - $1.3 billion Euromonitor International:
- 35. Marketing mix The Marketing mix is a set of four decision variables which need to be taken before launching any new product. These variables are also known as the 4 P’s of marketing. These four variables help the firm in making strategic decisions necessary for the smooth running of any product / organization. These variables are Product: A product can be divided into three parts: the core product, the augmented product and the tertiary product. Before deciding on the product component there are some questions which we might need to ask ourselves. What product are we selling? What would be the quality of we product? Which features are different from the market? What is the USP of the product? Whether the product will be branded as sub brand or completely new? What are the secondary products which can be sold along with primary (Warranty, services) Price: Pricing of a product depends on a lot of different variables and hence it is constantly updated. Major consideration in pricing is the costing of the product, the advertising and marketing expenses, any price fluctuations in the market, distribution costs etc Place: Place refers to the distribution channel of a product. The place where the product is distributed depends on the product and pricing decisions, as well as any STP decisions taken by a firm. Promotions: Promotions in the marketing mix includes the complete integrated marketing communications which in turn includes ATL and BTL advertising as well as sales promotions. Promotions are dependent a lot on the product and pricing decision.
- 36. Marketing mix- price india price war Flash back to the 80’s The first Detergent War was fought in the 80’s when a small manufacturer in Gujrat aggressively marketed a detergent powder called “Nirma” Nationally at one-fifth of the price of existing brands. The launch changed the profile of the Indian Detergent Industry. Loss its Market Share
- 37. Brands Launched in 1969, Rin with the power of its thunderous lightning flash has become a household name synonymous with dazzling white clothes. A Value added brand with different variants e.g. Rin matric & Rin advanced. Rin has won a number of accolades, the most recent being voted as the Most Preferred Detergent brand in India at the Awaaz Consumer Awards in 2006. Sunlight, A Heritage brand launched in 1888 In the form of detergent cake. Value added brand i.e. priced over Wheel but below Rin. Famous in WB & Kerala Wheel, low priced detergent. Introduced in 1987 to compete with Nirma. Surf Excel, launched in 1948 under the brand name ‘Surf’ in Pakistan & in 1959 launched in India as a first detergent powder. Initially, the brand was positioned on the clean proposition of “washes whitest”.
- 38. COMPETITORS SURF EXCEL: ARIEL WHEEL: NIRMA RIN: TIDE
- 39. Marketing mix- price india The pricing strategy of the company for detergents have always been in accordance with its competitor, consumers’ income level. Surf excel Liquid Detergent Surf Excel Bar
- 40. Marketing mix- Promotion india Quality Promotion about the products
- 41. Marketing mix- Promotion ndia Free tips about Laundry Products
- 42. Marketing mix- Promotion india Engaging their brand with people, mainly with children
- 43. Marketing mix- Promotion india 1st national detergent brand on TV Different format of communication Organizing various occasions like Children festival Sales promotion through aggressive pricing Quality centric approach i.e. Surf excel = 10 hands power. Very much engaged with society mainly children Providing tips for the children on outdoor games Dag Achhe Hain – The tag line of Surf excel
- 44. Marketing mix- Promotion india CHILDREN’s Surf Excel
- 45. Marketing mix- Promotion india Why “DAG ACHHE HAIN”??? Dag of #Achaar, #Paint & #Clay are not big deal for Surf Excel to remove. So, enjoy the moment of DAG. Dag ache hain!
- 46. Marketing mix- Promotion india
- 47. Marketing mix- Place india HUL distribution network – key strength which helps reach out its product across the length and width of the vast country. Direct coverage in over 1 million retail 80000 stockiest 30000+ supplier and associates Available in every shopping mall, retail stores like BIG BAZAR, MORE etc. Network Factory »»» Company »»» Warehouses »»» Distributor »»» Market Factory »»» Wholesaler & Big retailers (Bulk Orders) »»» 35% Sales
- 48. Thank you